Term Deposits and Tax planning

[Pommiegranite]

Hi all,

Am I correct in thinking that one should be careful as to when interest is credited to a term deposit for tax reasons?

Should this be used to one's advantage (by the deferral of income)? i.e enter a 12month term deposit ON July1, so no tax is payable on the interest until 2009-2010 tax year.

Thanks

 

[Duckman#72]

Hi all,

Am I correct in thinking that one should be careful as to when interest is credited to a term deposit for tax reasons?

Should this be used to one's advantage (by the deferral of income)? i.e enter a 12month term deposit ON July1, so no tax is payable on the interest until 2009-2010 tax year.

Thanks

That is correct Pommy.

 

[pepperoni]

Thats what ive done ... Im no accountant but I know my tax is on a cash basis.

Not rushing to invoice consultancies either to defer a few extra $.

 

[Pommiegranite]

Thanks for the replies guys.

Any thought on the currently available term deposits?

I notice that Rabobank are the only AAA rated bank, and would give me 8.25%

MaquarieWealth is tempting with 8.6% but I'm not sure how secure they are.

Also with the possibility of HBOS offloading Bankwest, I'm not sure I'd want to tie a large chunk with Bankwest either.

 

[bvbfan]

Does AAA really mean anything now?

Who gave them the AAA?

After the debacle from Moodys Fitch S&P I'd be weary of anything rated by those companies.

 

[darkone]

Thanks for the replies guys.

Any thought on the currently available term deposits?

I notice that Rabobank are the only AAA rated bank, and would give me 8.25%

MaquarieWealth is tempting with 8.6% but I'm not sure how secure they are.

Also with the possibility of HBOS offloading Bankwest, I'm not sure I'd want to tie a large chunk with Bankwest either.

Disclamer i curently work for citi bank

try citi bank if you have 50K+ and the funds are from outside there bank. they will do just about any thing to win you over. i sujest that you find the best rate you can then call citi ask to talk with a personal banker and they will do there best to match or beat it. if they cant just go with the other company

 

[pepperoni]

Disclamer i curently work for citi bank

try citi bank if you have 50K+ and the funds are from outside there bank. they will do just about any thing to win you over. i sujest that you find the best rate you can then call citi ask to talk with a personal banker and they will do there best to match or beat it. if they cant just go with the other company

Citi will give 8% at call and have offered me 8.6% on very short terms. I prefer CBA for large amount even if rates are lower.